21Shares is set to launch the world’s first centrally cleared ethereum and bitcoin cash ETPs in a move that will further push the institutionalisation of crypto assets.
Subject to approval by the Frankfurt Stock Exchange, the 21Shares Ethereum ETP (21XE) and 21Shares Bitcoin Cash ETP (21XC) will list on Deutsche Boerse on 9 March, with annual management fees of 1.49% and 2.50%, respectively. This follows previous listings of the products on the Swiss stock market in mid-2019.
The strategies will come to market amid a period of strong demand from institutional investors and corporations seeking to add crypto assets to their portfolios. 21Shares said that while there are already a number of crypto financial products on offer, there is a lack of institutional-grade products for other large-volume crypto assets.
The addition of a central clearing counterparty (CCP) offers clients advantages such as standardisation, risk reduction and operational efficiency – with 21Shares stating that central clearing will enhance liquidity, as trading costs will be reduced while the selection of eligible counterparties will be expanded.
Hany Rashwan, CEO at 21Shares, said this new development is just the latest in the company’s track record of bringing innovative crypto products to market.
Rashwan said: “While other issuers continue to follow our steps in listing a Bitcoin ETP on a stock exchange, we had time to build the infrastructure and actively conduct regulatory lobbying for other innovative crypto assets and issuances.
“This is why we were the first to list an Ethereum and Bitcoin Cash ETP on the Swiss stock exchange and we are now leveraging our expertise to provide investors in the DACH region and beyond with the same institutional reach, safety and cost-effective ways to gain exposure to crypto-assets.”
21XE and 21XC are fully collateralised using Coinbase as independent regulated institutional-grade custodian, and collectively have assets exceeding $100m.
The entry of these world-first products follows the launch of 21Shares’ 12 other products, including its Polkadot ETP (ADOT), which came to market in February 2021.